Readers Question: If British industry was to become uncompetitive it would have the following adverse effects on the economy: one of them is a higher level of inflation. How to explain that? If British industry becomes uncompetitive it means that basically, the UK’s cost of production is rising faster than our international competitors. For example, …
Example of a AQA unit 4 question from June 2007. AQA paper available here Note: Some of the data can’t be published online. This is just a short guide to answer the question. I think it lacks – more use of data and more evaluation. Explain why Free Trade is important to EU member countries …
Readers Question – what on earth is the black market and how does the immigrant have an impact on that? The black market is a colloquial term that refers to economic activity that is not regulated by the government. It involves economic activity where people don’t declare tax returns or pay VAT e.t.c. It is …
If you have exams this afternoon, there isn’t much more revision you can do. What is important now is the right exam technique. These tips may sound like common sense and stating the obvious, but, every year a significant % of candidates make these mistakes and so reduce their grade. Although they may sound obvious …
Readers Question: Discuss the likely economic impact on absolute and relative poverty of China’s rapid economic growth? It is an interesting question because even the Chinese government have been concerned that China’s rapid economic growth has not helped large sections of the population, especially in the north. Absolute poverty is defined as the minimum level …
Readers question: Should the Government intervene to deal with the problem of Oil Shortages or is it better to leave it to a free market? As oil runs out, supply will shift to the left and the price will increase. Because demand is inelastic, oil firms will make increased profits. This creates an incentive for …
The price of oil reached another record high yesterday – $125 Brent Crude oil reached $126 US light crude oil reached $128 before setting back to $127 This means that, even adjusted for inflation, oil is now close to the all time high, last reached in the 1970s. What are the reasons behind the Recent …
Readers Question: What would stop the falling dollar? The dollar has been falling for many reasons. These are some of the factors which would stop the dollar falling and lead to a recovery in the value of the dollar. Higher Interest rates. US interest rates have been cut to 0% in an effort to stave …